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The download itself did slow things down, and I don't know how long that went on. I was moving pretty slow last night too with typing in assets for 3115 attachment, so maybe I didn't notice the lag.

Joan, for my system it was only a couple of minutes at shutdown, as usual. Then updating the registry on restart, it seemed like only a minute or two more.

Yes, I had slowdown yesterday with that windows update. When I shutdown, it said 21 updates were being installed.

Not really. I don't use ATX, but my software does have the de minimis election. I believe that election only covers the $500 and $200 limits in Reg 1.263(a )-1(f) and 1(h)(2)(ii). According to the CCH special report I saved earlier this year, this says that a statement must be attached to a timely filed return (including extensions) each year, and references 1.263(a )-3(h) and 1.263(a )-3(r )(2)(ii). It doesn't appear that the de minimis election covers this. Am I totally wrong about this?

Yes, the add back would be the $600 if they were below 200% of FPL and filing as any status other than single. So the amount you should have started with for the initial calc would have been the out-of-pocket portion of the premiums your client paid plus the $600 and go from there. As for your second post above, I don't think you need to do the calculations in 2014-41 if the taxpayer does not have any repayment of the subsidy he used during the year. Is that how you ended up working it out?

Doesn't this mean that for all of our clients that fall into the definition of "small taxpayers" that also rent space, that they should be making this annual election in addition to the other de minimis one?

Depending on the type of business the taxpayer is in and what the repair is for, in addition to the de minimis safe harbors for tangible property purchased and the materials and supplies, there is also a safe harbor for small taxpayers with buildings (Reg sec 1.263(a )-3(h)(8) that says the total of repairs and improvements for building repairs totaling 2% or less than the unadjusted basis of the building, capped at $10,000, meets the safe harbor. The safe harbor also extends to lessees where a taxpayer leases a building or leases space within a building, ref is reg sec 1.263(a )-3(h)(2). The "unadjusted basis" of a leased building or space is equal to the amount of undiscounted rent paid or expected to be paid over the entire lease term, including renewal periods. Small taxpayer definition - having average annual gross receipts of $10 million or less in 3 preceding tax years. I have my retailer that I'm still working on today that leases two retail stores. He falls into that safe harbor also, so in general terms for example, if he pays ~ $50K per year for one store and has a 5-year lease, that's 250K * 2%, so he has a safe harbor of $5K. If the lease had a 5-yr option, the safe harbor would include that option period too. If he spends $800 to fix a damaged door or a plumbing issue that don't fall into the categories of betterments, restorations, or adaptations, then can he safely continue to expense those? Am I on the right course?! Also, from what I've read, this is an election that must be made for each building that the taxpayer must make each year with the timely filed original tax return. Timely filed includes through the extended due date. I can't find a sample election and isn't included in my software. Does anyone have something they could share?

That might depend on the type of business your taxpayer is in and what the repair is for. In addition to the de minimis safe harbors for tangible property purchased and the materials and supplies, there is also a safe harbor for small taxpayers with buildings (Reg sec 1.263(a )-3(h)(8) that says the total of repairs and improvements for building repairs totaling 2% or less than the unadjusted basis of the building, capped at $10,000, meets the safe harbor. The safe harbor also extends to lessees where a taxpayer leases a building or leases space within a building, ref is reg sec 1.263(a )-3(h)(2). The "unadjusted basis" of a leased building or space is equal to the amount of undiscounted rent paid or expected to be paid over the entire lease term, including renewal periods. Small taxpayer definition - having average annual gross receipts of $10 million or less in 3 preceding tax years. I have my retailer that I'm still working on today that leases two retail stores. He falls into that safe harbor also, so in general terms for example, if he pays ~ $50K per year for one store and has a 5-year lease, that's 250K * 2%, so he has a safe harbor of $5K. If the lease had a 5-yr option, the safe harbor would include that option period too. If he spends $800 to fix a damaged door or a plumbing issue that don't fall into the categories of betterments, restorations, or adaptations, then I think he can safely continue to expense those. Am I on the right course with that?!

Thanks, Marco. That is about how I'm feeling with these repair regs.

I haven't seen anything more from the AICPA either, only what Ron posted directly above.

This has to be the biggest time waster I've ever seen in my entire career. Why didn't someone think of the novel solution to scrubbing the old fixed assets to have a code within our depreciation programs to create the schedules for the net 481 adjustments to flow onto the return automatically if the net end result was a small amount. We could have even scrapped the asset with a new indicator code also. Or how about a Form 3115EZ for those making only changes of nominal amounts for this automatic change in method.

Household income would include the husband and the wife. None of the programs are able to calculate that figure automatically because there is no way the programs would automatically know about dependents' income where they might be filing their own returns.

Yes, Ron is correct on that. The only thing I want to add is to consider if notifying the state is necessary also, Are there any state or local taxes that having differing rates depending on the business activity? We have a Delaware "gross receipts tax" with a stated rate applied to amounts over a stated exemption, and those are all assigned when the business files its first business license application. The state has a variety of rates and exemptions that it assigns depending on the activity of the business. Filing frequency can also differ.

This booklet and template has helped me a lot. Thank you again for posting it! Now for the stupid question of the evening. I am still pulling my hair out with this because I have about 30 small assets to write off that will amount to a total deduction (negative change) of a whopping $339! I'm filling out the worksheet for a company with a fiscal year end. If an asset is put in service, say in March 2004, and the company has a May 31 fiscal year end, technically that asset appeared on the 2003 tax form. So on my worksheet, should I be entering the 2003 tax year, or should I enter 2004 because that is the actual year of purchase?

Honestly, I highlighted your code with my mouse and right-clicked to "google". It was more likely yahoo search. One of the choices was to the IRS site, so I chose that first and found that very quickly.

That is weird. I think I might call ATX about it, or try to recreate and resubmit. It looks like something wasn't included properly on ATX' end. There's nothing in their knowledgebase about that code either. The IRS site says this about that code: All electronically filed returns are required to have a Software Identification Number (SIN) transmitted as part of the return. If the number is not provided, the return will reject with MeF Business Rule R0000-904-03. The Software Identification Number is designed to identify software products used when transmitting returns to the IRS. It is not used to track the serial numbers of individual software packages. Note: Individuals or firms who purchase another Developer's current year approved software for the purpose of using and/or marketing it under their own name, must complete and submit an application requesting a separate Software Identification Number (SIN).

See the snip from the instructions in 8965, page 12 I've copied below. Bolding is mine on that last sentence. I'd make sure that the client understands that they can allocate using any percentage they agree on. If they agree, your client will use 100% of the subsidy in calculating his return. If they don't agree, then your client is limited to 50%: Taxpayers divorced or legally separated in 2014. You and your former spouse must allocate policy amounts on your separate returns to figure your PTC if both of the following apply.You were married at some point during 2014 but were no longer married to that spouse at the end of 2014.You and your former spouse were enrolled in the same qualified health plan, or you or an individual in your tax family (as shown on your tax return) was enrolled in the same policy as your former spouse or as an individual in your former spouse's tax family at any time during 2014. You will allocate with your former spouse a percentage of the total enrollment premiums, the premiums for the applicable SLCSP, and APTC for coverage under the plan during the months you were married. You will find these amounts on your Form(s) 1095-A, Part III, columns A, B, and C, respectively. You and your former spouse can allocate these amounts using any percentage you agree on between zero and one hundred percent, but you must allocate all amounts using the same percentage. If you do not agree on a percentage, you and your former spouse must allocate 50% of each of these amounts to you and 50% of each to your former spouse.

No, you looked at the figures for a dependent over 65 or blind. Your dependent has these filing requirement thresholds: when earned income exceeds $6200, unearned income exceeds $1000, or gross income was the larger of $1000, or earned income (up to $5850) + $350 Anyway, this dependent must file, and if his or her MAGI is the $7776, that is the figure you should add into household income.

Thank you, Ron, that is my basic understanding as well. The one that I have on my desk right now is a smallish retailer with 2 locations and the materials/supplies issue. If this business purchases preprinted bags, gift boxes and sales slips that are not all used by the year-end, am I really supposed to analyze that and move some of that expense to a supplies inventory?! Sort of rhetorical, but that is what I'm looking at today and trying to decide because the sales slips purchased near enough to year end to have not all been used up exceeded the $200 threshold. It's a measly $700 bill for these sales slips, and I think this is why the AICPA and other groups are arguing that the thresholds are too low. This seems like a big waste of time for something that is used on an ongoing and steady basis... or am I completely off the track with my thinking about this "supply" issue?

The OP asked how to properly file the gift tax return to make the election. I gave the technically correct answer so that he knows the proper way to do that, and he will decide how best to advise his client. If you don't want to do that then don't, but I don't know why you are taking such exception to me providing the OP with the technically correct answer here.

GeorgeM, please see pages 18-19 http://www.socialsecurity.gov/pubs/EN-05-11011.pdf

So it's your contention that if no one will EVER look then it's ok to miss an election, or to not file, or to file incorrectly, and that's how you advise your clients as an enrolled agent? Nice! /s The OP now has the correct answer. He can now decide how to properly advise his client.

Yes, this doesn't help me with the 5/31 that I'm working on that is due next Monday.

Yes, if both meet the requirements of minimum essential coverage, all you have to do is check the box on line 61, and it looks like that is the case.